Unclassified Defense Contract Management Agency RDT&E Descriptive Summaries Volume I Fiscal Year (FY) 2008/FY 2009 Budget Estimates

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1 Exhibit R-, RDT&E Budget Item Justification : February 007 Appropriation/Budget Activity: 0400D/05 R-1 Item 111 Nomenclature: Standard Procurement System (SPS): ($ in millions) FY 06 FY 07 FY 09 FY 10 FY 11 FY1-FY13 PE 5.00 N/A N/A N/A N/A N/A N/A Standard Procurement System (SPS) 5.00 N/A N/A N/A N/A N/A N/A A. Mission Description and Budget Item Justification DoD initiated the Standard Procurement System (SPS) in 1994 to enhance readiness and support to Warfighters through standardization and optimization of procurement systems and activities. SPS is currently supporting over 1,000 users in the field and is the largest standard business system in DoD. The program is designed to enable compliance with Acquisition Reform, align with expanded DoD goals and missions, and replace legacy systems with a single standard procurement system. To date in fiscal year 005, operational procurement professionals relied on SPS to complete contracts awards in excess of 103 billion dollars. The SPS is fully aligned with the following President s Management Agenda (PMA) initiatives: 1) Expanded Electronic Government - The President's Management Agenda focuses on advancing E-government strategy by supporting projects that offer performance gains across agency boundaries, such as e- procurement, e-grants, e-regulation, and e-signatures. The SPS supports this strategic goal by sharing information more quickly and conveniently between DoD contracting activities and financial systems. The benefits of this data sharing flow to industry and the citizens because contracts and payments can now be processed much more rapidly and with reduced data entry errors. The SPS provides automated creation of contracts and grants and the electronic sharing of obligation data with DoD's financial systems. Invoices can be paid faster and excess funds are available to the Government more quickly. In addition, contract reconciliation requires fewer resources than prior manual processes. All of this helps cut Government operating costs and provides citizens and the Congress with easier access to contracting information. Further, the next major software release being developed, Version 4. Increment 3, will provide web-based access for all SPS users. In addition, Increment 3 will provide Public Key Infrastructure (PKI) based digital signatures. SPS is the primary system within the Weapons System Lifecycle Management Business Mission Area (formerly the Acquisition Domain) for incorporating procurement capabilities in response to the President's Management Agenda with the egov Integrated Acquisition Environment (IAE) initiative. SPS was awarded the 003 Grace Hopper Government Technology Leadership for "Leadership in the innovative application of information technology that breaks down barriers between offices, agencies and departments, or between federal, state and local governments". Page 1 of of 0

2 Exhibit R-, RDT&E Budget Item Justification (Continued) : February 007 A. Mission Description and Budget Item Justification (Continued) ) Strategic Management of Human Capital - The President's Management Agenda focuses on concerns over a declining federal workforce, which moves skills out of balance with the needs of the public it serves. Part of the Administration's expressed initiative is to adopt information technology systems to capture some of the knowledge and skills of retiring employees. The Standard Procurement System (SPS) supports this initiative through its web-accessible Knowledge Base that shares information throughout the Department of Defense's (DoD's) procurement community. In addition, the SPS contains an extensive on-line help feature that provides step-by-step guidance in using the software for both functional users and system administrators. It also contains an easily accessible Reference Library with links to a wide variety of procurement reference materials (regulations, manuals, policy documents) via web sites. Further, the system provides access to local procedures and policy guides which can be tailored for each location. The SPS Program is currently implementing web-based training for Version 4. Increment 3. 3) Competitive Sourcing - The President's Management Agenda focuses on achieving efficient and effective competition between public and private sources. The SPS, which is the result of a competitive contracting initiative, supports this agenda by utilizing a commercial software application as the basis for its automated system. When the concept of the standard procurement system began, it was envisioned that the target system would utilize the "best of the breed" from Government-owned and operated migration systems. A model of Procurement was constructed in 199 and was used to aid in the selection of migration systems. Later, the Procurement Corporate Information Management Council determined that a commercial industry product should be acquired and then modified to meet the Department of Defense needs. In addition to providing the basic software application, industry provides the Help Desk functions, program management support, training, installation, on-site support, interfaces and any other modules or support services needed to maintain the Standard Procurement System. Page of of 0

3 Exhibit R-, RDT&E Budget Item Justification (Continued) : February 007 A. Mission Description and Budget Item Justification (Continued) 4) Improved Financial Performance - The President's Management Agenda focuses on ensuring that federal financial systems produce accurate and timely information to support operating, budget and policy decisions. The SPS is listed as a critical feeder system in the DoD Financial Management Improvement Plan. As such, the SPS automates the capture of contractual obligations and, through interfaces with DoD financial systems, provides improved visibility for funds tracking and enables more rapid release of excess funds (thus contributing to the unqualified audit opinion). The single data entry and shared standard data reduces the opportunity for error in matching disbursements with obligations. The reengineered reporting processes for the Federal Procurement Data System enables acceleration of end-ofyear reporting and provides greater visibility into DoD obligations, enabling more informed operational decisions. Version 4. Increment 3, which will comply with the Federal Financial Management requirements, successfully completed the Business Management Modernization Program (BMMP) approval process. 5) Budget and Performance Integration - The President's Management Agenda focuses on linking budget decisions with performance (measurable outcomes). The SPS supports performance-based service acquisitions. Internal to the Program Office, performance criteria and monitoring mechanisms are put in place to measure contractor performance. For example, Version 4. Increment 3 delivery order has set forth performance based payments based upon achievement of specific events or accomplishments that are defined and valued in advance by the Government and the contractor. In addition, the Program Office measures contractor performance on the Help Desk Order by monitoring metrics monthly for call volume and to ensure that the contractor is meeting the performance criteria. When working on service requests, the SPS Help Desk is required to meet target percentages for average response and average resolution times. The Program Office measures contractor performance on the Deployment Order by (1) successful execution of the deployment process and () a favorable rating on the Exit Checklist. A deployment process is executed successfully if an installation or upgrade is completed within benchmark timeframes that are based on hardware configurations. The Exit Checklist is completed by sites following the installation or upgrade of the SPS software and returned to the Program Office's Contracting Officer within 7 days. The contractor receives 70% of payment upon successful completion of the installation or upgrade. The remaining 30% of the payment is issued upon receipt of a favorable rating on the Exit Checklist. If the contractor exceeds the benchmark timeframe or receives an unfavorable rating on the Exit Checklist, penalties are appropriately applied. The Deployment delivery order currently meets all the criteria of a performance-based acquisition: (1) the work is stated in terms of outcomes/results () there are measurable performance standards and (3) there is a mechanism for price reduction if outcomes are not met. All new contract actions that obligate service dollars will be performance based acquisitions to the maximum extent possible. Payments will not be authorized until satisfactory contractor performance has been demonstrated. Page 3 of 11 1 of 0

4 Exhibit R-, RDT&E Budget Item Justification (Continued) : February 007 B. Program Change Summary: FY06 FY07 FY08 Previous President s Budget (PB07) Current BES/POM08 Budget Adjustments Congressional Program Reductions Congressional Rescissions Congressional Increases Reprogramming SBIR/STTR Transfer Transfers Inflation Adjustment Agency Reductions Completed the development, delivery and test of a stand alone version of SPS which can be installed or upgraded in the field without JPMO support. Completed the development, delivery and test of two versions of the esf-44 to support contingency contracting in Iraq and the Horn of Africa. Acquired an IATO for testing of Completed the development, delivery and test of a Service Release on the 4.. product. Completed the development, delivery and test of a Service Release for the FPNS-NG engine. Completed the development, delivery and test of a PD adapter.3. Completed the development, delivery and test of the web-based training for Completed the development of the 4..3 product initial product received in February and the integrated product was received in July06. Completed the GV&V of the initial 4..3 product and the 4..3 integrated product. The magnitude of these efforts resulting in future software changes is expected to be significant; therefore, software changes are budgeted in RDT&E. Funding also supports version 4. Increment 3 development and testing. Version 4. Increment 3 will increase system performance, enhance functional capabilities, maximize modular solution sets, and expand integration among the logistics, procurement, and financial communities of the DoD using web-based technology. Increment 3 presents significant architecture changes in support of the Services/Agencies server consolidation initiatives as well as BMMP objectives. As a result, extensive testing is required utilizing a three-tiered testing approach to ensure the software meets requirements. This testing approach is discussed below on the R-3. Funding in the out years (FY07 thru FY11) were transferred from (DCMA) PE to Business Transformation Agency (BTA) PE. The following amounts were transferred to BTA per Program Budget Decision (PBD) 71: FY07 = $4.64 Million, FY08 = $3.610 Million, FY09 = $3.814 Million, FY10 = $3.915 Million, and FY11 = $4.018 Million. Page 4 of of 0

5 Exhibit R-, RDT&E Budget Item Justification (Continued) : February 007 C. Other Program Funding Summary: Displayed on R-a D. Acquisition Strategy: Displayed on R-a E. Performance Metrics: The Program has negotiated substantial configuration management changes under its delivery orders for Version 4. Increments 1 (fielded) and (currently fielding) and is continuing this protocol with Version 4. Increment 3 (completing development and testing). Each delivery order has set forth performance based payments based upon achievement of specific events or accomplishments that are defined and valued in advance by the Government and the contractor. These changes have provided an enhanced technical and schedule focus. In addition, the Government has instituted a three-tier testing approach that involves observation of the contractor's own testing processes in its first phase (Validation). Here the Government observes whether or not the developer has followed a repeatable process and whether the SPS Joint Requirements Board (JRB) and the developer jointly-approved test scripts are accurate and effective in determining whether requirements are met. In the second phase, System Acceptance Testing, the Government performs its own testing against the jointly-approved test scripts, vendor documentation, on-line help, SPS Technical Working Group designated hardware and software platforms, and installation software. Payments are tied to whether or not the software satisfactorily passed the test scripts and that no priority 1 or system deficiency reports exist based upon the IEEE/EIA 107(replaces MIL-STD-498) criteria. In the third phase, the Government performs its end-to-end testing to verify the software in an operational environment, against functional business processes, and to determine software effectiveness, and suitability. Results at each phase of testing are vetted through scoring conferences using the IEEE/EIA 107 criteria to assess the severity of needed software fixes. Configuration management is maintained on all functional solutions, functional designs, test scripts, audit results and product deliverables. Version 4. Increment 3, which was delivered to the JPMO for testing on 1 July 006, continues to use the proven process implemented with Version 4. Increment 1 and continued with Version 4. Increment. An incremental development strategy is being used during the development of Version 4. Increment 3. This incremental development will include interim build(s) and one final build. The result will be total package fielding approach once the final build has been accepted by the SPS JPMO. During the development process, the Government has inserted decision points (go, no go) at build review period prior to payment authorization. These decisions are based on demonstrated acceptable performance in accordance with the contract requirements. Page 5 of of 0

6 Exhibit R-a, RDT&E Budget Item Justification : February 007 APPROPRIATION/BUDGET ACTIVITY: 0400D/05 R-1 Item 111 Nomenclature: Information Technology Development-Standard Procurement System (SPS): COST (In Millions) FY 06 FY 07 FY 09 FY 10 FY 11 FY1 -FY13 Standard Procurement System (SPS) 5.00 N/A N/A N/A N/A N/A N/A RDT&E Articles Quantity* N/A N/A N/A N/A N/A N/A N/A A. Mission Description & Budget Item Justification: (Provide a project overview) The Standard Procurement System (SPS) is based on modification of a commercial off-the-shelf software application. The software is modified to support DoD requirements not met by the initial commercial product (i.e. requirements prompted by the Federal Acquisition Regulation (FAR) and the Defense Federal Acquisition Regulation Supplement (DFARS)). The SPS follows a spiral development approach, increasing the performance envelope of the existing system incrementally until the objective system is achieved. The SPS is predicated upon 99 functional requirements identified by a DoD inter-service functional requirements team in RDT&E funds support efforts related to the development, testing, and integration of these functional requirements. B. Accomplishments/Planned Program: Accomplishment/Effort/Subtotal ($M) FY06 FY07 FY08 Standard Procurement System (SPS) 5.00 N/A N/A SPS Product (PD)/Service Releases/Enterprise Adapter/Data Mapping/BRCCS/Technology Insertion N/A N/A Testing (JITC, IV&V, SAT, LSVT).38 N/A N/A Technical Support N/A N/A RDT&E Articles Quantity* N/A N/A N/A Page 6 of of 0

7 Exhibit R-a, RDT&E Budget Item Justification (Continued) : February 007 B. Accomplishments/Planned Program: Continued The Government officially accepted SPS version 4. Increment 1 on 0 June 00 and promptly began deployments on 4 June 00. This version was delivered to the Government on schedule and within cost. Version 4. Increment 1 deployment concluded in June 004 with a user base of 15,37 users. The Version 4. Increment software application is integrated with adaptive technology that presents SPS data in an open Extensible Markup Language (XML) format. This allows data mapping from the application directly to the required legacy formats or through the Defense Electronic Business Exchange to interfacing systems. In support of the adaptive technology, to date, SPS has developed 96 distinct translators that apply 5,480 unique business rules to incoming/outgoing SPS and legacy transactions. As of November 006, Version 4. Increment was deployed to 0,104 users. Version 4. Increment 3 successfully completed the Business Management Modernization Program (BMMP) approval process in October 003 and was placed under contract. Version 4. Increment 3 will increase system performance, enhance functional capabilities, maximize modular solution sets, and expand integration among the logistics, procurement, and financial communities of the DoD using web-based technology. The Increment 3 product will evolve through 5 software builds. Build 4 was delivered to the Government in August 005 for joint testing. Build 5 was delivered on 1 July 006 and is currently undergoing joint testing. Extensive testing is required for all Increments utilizing a three-tiered testing approach to ensure the software meets requirements. This testing approach is discussed below on the R-3. C. Other Program Funding Summary: FY 06 FY 07 FY 09 FY 10 FY 11 FY1- FY13 Complete P-1 Line Item No 33, Standard Procurement System (SPS): 8.86 N/A N/A N/A N/A N/A N/A N/A N/A O&M Funds: N/A N/A N/A N/A N/A N/A N/A N/A D. Acquisition Strategy: The Standard Procurement System (SPS) has an Acquisition Strategy prepared 4 March 1997 by the Defense Procurement Corporate Information Management (CIM) Systems Center in accordance with DoD R. There is an Acquisition Plan for Version 4. Increment 3, dated August 003. E. Major Performers: American Management Systems (AMS), the core product developer, was awarded a Firm Fixed Price contract in August CACI acquired AMS in May 004. CACI is located in Fairfax, Virginia and is engaged in the development, testing, deployment, training, and integration efforts of the SPS Program. Page 7 of of 0

8 APPROPRIATION/BUDGET ACTIVITY: 0400D/05 Categories Product Development SPS Product (PD)/Service Releases/Enterpr ise Adapter/Data Mapping/BRCCS/ Technology Insertion Contrac t Method & Type C FFP SS FFP Unclassified Exhibit R-3 Analysis : February 007 Performing Activity & Location CACI Fairfax/ Arlington, Va Evolutionar y Technologie s Inc. Austin, TX PYs FY FY 06 QTR 1 & QTR FY 07 N/A FY 07 QTR 1 & QTR N/A R-1 Item 111 Nomenclature: QTR 1 & QTR to Complete Target Value of Contract N/A N/A N/A Remarks: Version 4. Increment 3 will increase system performance, enhance functional capabilities, maximize modular solution sets, and expand integration among the logistics, procurement, and financial communities of the DoD using web-based technology. Version 4. Increment 3 delivered for testing July 006. Funding supports development and testing of service releases in support of software changes identified by the Joint Requirements Board (JRB). The magnitude of these efforts resulting in future software changes is expected to be significant; therefore, software changes are budgeted in RDT&E. Page 8 of of 0

9 APPROPRIATION/BUDGET ACTIVITY: 0400D/05 Categories Support s Contract Method & Type Various Unclassified Exhibit R-3 Analysis (page ) : February 007 Performing Activity & Location Various (under $1M) PYs FY 06 FY QTR 1 & QTR FY 07 FY 07 N/A QTR 1 & QTR N/A R-1 Item 111 Nomenclature: QTR 1 & QTR to Complete Target Value of Contract N/A N/A N/A Remarks: Key to the program s well being is continued configuration management and compliance with DoD 5000 regulations. Categories Test & Evaluation Contrac t Method & Type MIPR Performing Activity & Location Joint Interoperability Test Command (JITC) Fairfax, VA PYs FY 06 FY 06 FY 07 FY 07 to Complete Target Value of Contract QTR 1 N/A QTR 1 N/A QTR 1 N/A N/A N/A Remarks: The SPS JPMO continues to follow a three-tier testing approach that involves validation of the contractor s own testing (when feasible), system acceptance testing with component representation, and end-toend testing. Several applications are being integrated with our procurement product suite to take advantage of technology advances and to provide procurement information to other DoD programs. These inserted products help validate data, and to distribute information to other systems. This requires the additional testing of maps and translations to various required formats prior to integration testing with our procurement suite. Changes or corrections to any of the products require an assessment of whether there are additional impacts on our integrated procurement suite. Testing will be required to determine if requirement adjustment(s) or changes have been correctly addressed and whether a previous capability has been affected. If multiple products are changed at the same time, integrated testing becomes more complex and must be properly controlled to determine which product change caused an issue(s). Testing our integrated procurement suite may also be dependent upon other new systems availability to test the interfaces. Testing will be required to be more frequent as additional insertions become necessary and improvements to fielded suites are required. Page 9 of of 0

10 Exhibit R-4, Schedule Profile : February 007 APPROPRIATION/BUDGET ACTIVITY: 0400D/05 R-1 Item 111 Nomenclature: Page 10 of of 0

11 Exhibit R-4a, Schedule Detail : February 007 PROPRIATION/BUDGET ACTIVITY: 0400D/05 R-1 Item 111 Nomenclature: Standard Procurement System (SPS): v4..3 Contract v4..3 Build 3 Government Validation & Verification v4..3 Build 3A Government Validation & Verification v4..3 Build 4 Development v4..3 Build 4 Government Validation & Verification v4..3 Build 5 Development w/cas v4..3 Build 5 Government Validation & Verification v4..3 Milestone C Review v4..3 System Acceptance Testing v4..3 Full Deployment Decision Review v4..3 Pilot Testing v4..3 Deployment FY 04 FY 05 FY 06 FY 07 FY 09 FY 10 1Q 4Q 1Q 3Q-4Q05 4Q-1Q06 3Q-1Q07 4Q-1Q07 Q Q 4Q 3Q-4Q 1Q-4Q09 Page 11 of 11 0 of 0